Upgraded to the latest WPMU version (v2.9.1) from v2.8.6. And new users are unable to "add a new blog account" to Windows Live Writer (WLW). Gives the following error...
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No Blogs Found on Server
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A successful connection was made to your account however the server
reported that you do not currently have an active blog. Please ensure
that your account with this provider is current before proceeding.
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OK
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People who had already added their account to WLW can post fine. I tried a fresh install of v2.9.1 and it also does the same thing.
However in v2.8.6 everything was working fine.
XML-RPC is on on all blogs. User is an administrator. Using sub-directory structure for blogs. And using the latest version of PHP, Apache and MySQL if it makes a difference.